BROWSE BY TOPIC
- Bad Brokers
- Compliance Concepts
- Investor Protection
- Investments - Unsuitable
- Investments - Strategies
- Investments - Private
- Features/Scandals
- Companies
- Technology/Internet
- Rules & Regulations
- Crimes
- Investments
- Bad Advisors
- Boiler Rooms
- Hirings/Transitions
- Terminations/Cost Cutting
- Regulators
- Wall Street News
- General News
- Donald Trump & Co.
- Lawsuits/Arbitrations
- Regulatory Sanctions
- Big Banks
- People
TRENDING TAGS
Stories of Interest
- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
ABOUT FINANCIALISH
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
SUBSCRIBE FOR
NEWSLETTERS & ALERTS
Insider Trading: Movie Producer and 'Entourage' Charged
May 8, 2012
[ By Howard Haykin ]
SEC Enforcement can be relentless, particularly when it knows the prize is a high profile individual. On Tuesday, the Commission "bagged" a Hollywood movie producer along with his friends (3 in his inner circle), family (his brother and cousin) and business partners for insider trading. The group traded in the stock of a company for which the producer served on the board of directors.
SEC Findings and Allegations. Mohammed Mark Amin sits on the board of DuPont Fabros, a NYSE-listed real estate investment trust (REIT) that develops and operates wholesale data centers that maintain computer servers for such companies as Microsoft, Facebook, and Google.
Prior to a company board meeting, he learned confidential information about expanding business opportunities for DuPont Fabros Technology Inc., which develops and manages highly-specialized and secure facilities that maintain large computer servers for technology companies through long-term leases with them.
Amin tipped brother Robert Reza Amin, cousin Michael Mahmood Amin, and long-time friend and business manager Sam Saeed Pirnazar with nonpublic details about 3 new leases that DuPont Fabros was negotiating and 3 loans it was obtaining to develop new facilities. The three illegally traded on the basis of that inside information. Reza Amin went on to tip his friends and business associates Mary Coley and Ali Tashakori, who also illegally traded.
All told, they made over $618,000 in illicit insider trading profits when DuPont Fabros stock rose 36% after it issued an earnings release highlighting the development of these new facilities.
According to the SEC’s complaint filed in U.S. District Court for the Central District of California, Mark Amin is a motion picture executive with his own production company. He lives in L.A. and is credited as the producer or executive producer for more than 75 Hollywood movies including Frida, Eve’s Bayou, and 4 movies in the Leprechaun series. In 2007, Amin began serving on the board at DuPont Fabros, a NYSE-listed real estate investment trust (REIT). DuPont Fabros develops and operates wholesale data centers that maintain computer servers for such companies as Microsoft, Facebook, and Google. Amin resigned from the board in February 2011.
Amin Gains Access to Information. Mark Amin allegedly first learned nonpublic information about new leases and loans pending for DuPont Fabros during a board meeting in December 2008, and he further discussed their status in a phone conversation with the company’s CEO on 1/7/09. Later that day, Amin tipped cousin Michael Amin and friend and business manager Pirnazar. In fact, Mark Amin initially asked Michael to lend him money and discussed Michael’s purchasing DuPont Fabros stock for both of them in Michael’s name.
On 2/4/09, it's alleged that Mark Amin received materials for a special board meeting to approve the 3 new loans. The next morning, he tipped this inside information to brother Reza Amin, who began buying DuPont Fabros stock just 17 minutes after receiving the tip. The new loans were approved that day.
SEC Sanctions. For allegedly violating Section 10(b) of the SEA of 1934, and Rule 10b-5(a) and (c) thereunder, Mark Amin and the 5 others agreed to collectively pay nearly $2 million to settle the SEC’s charges - $618K in disgorgement, $78K in prejudgment interest, and $1.24 million in penalties. Mark Amin also agreed to a bar from serving as an officer or director of a public company for 10 years. The settlement is subject to court approval.
SEC Staff Credits. Investigation by LA Reg'l Office enforcement attorney John Britt, with FINRA assisting.
For further details, go to: [SEC PR 12-86, 5/8/12] and [SEC Complaint].

